Hotel Online  Special Report

advertisement

,

Wyndham Reports Net Loss of $89.1 million for the 3rd Qtr
versus a $78.2 million Net Loss for the Same Period in 2002; 
Total Net Debt at $2.688 billion
Hotel Operating Statistics
DALLAS - Nov. 11, 2003--Wyndham International, Inc. (AMEX:WBR): Third Quarter 2003 Results Summary:
  • For the third quarter, EBITDA, as adjusted, was $45.9 million. On a pro forma basis, adjusted EBITDA was $43.5 million compared to $42.0 million for the same quarter last year. 
  • The Company's comparable owned and leased properties that are Wyndham branded and -operated continue to outperform the Company's non Wyndham branded properties, posting a positive 1.8 percent RevPAR change or a RevPAR of $79.49. Wyndham-branded comparable owned and leased properties had a strong market share gain with a RevPAR penetration index of 109.1 percent, an increase of 320 basis points year-over-year. 
  • Wyndham sold four assets for a total of $56.2 million with net proceeds being used to pay down debt. 
  • Total net debt at the end of the third quarter was $2.688 billion. 
  • Voice reservations were up 29 percent with Wyndham.com reservations up 143.9 percent.
Wyndham International, Inc. (AMEX:WBR) today reported that adjusted EBITDA was $45.9 million for the three months ending Sept. 30, 2003, compared to $61.1 million for the same quarter last year. On a pro forma basis excluding assets sold and held for sale through Sept. 30, 2003, adjusted EBITDA was $43.5 million compared to $42.0 million for the same quarter last year. Year-to-date, adjusted EBITDA was $209.9 million. Adjusted pro forma EBITDA was $198.8 million compared to $218.1 million for the same period in 2002. This variance is attributed to impact of Operation Iraqi Freedom and the effects of SARS.
    
Wyndham reported a net loss of $89.1 million and a pro forma net loss of $53.5 million for the third quarter versus a $78.2 million net loss and a $69.1 million pro forma net loss for the same period in 2002. After the effect of the Company's preferred dividend, this resulted in a net loss of $0.76 per share on a fully diluted basis. The net loss on a pro forma basis was $0.55 per share. For the nine months ended Sept. 30, 2003, the net loss was $288.0 million compared to $462.7 million from the prior year. After the effect of the preferred dividend, the resulting net loss per share was $2.40 on a fully diluted basis compared to $3.39 from the prior year. Pro forma net loss year-to-date was $1.22 per share compared to $1.42 from the prior year.
    
Total Company comparable owned and leased RevPAR, including non-proprietary assets, posted an increase of 1.2 percent versus the same period in 2002 for a $70.35 RevPAR. This increase was comprised of a 5.3 percent increase in occupancy and a 3.9 percent decline in ADR.
    
"Although the industry was impacted by the continued challenging operating environment, we are encouraged by the steady improvement in Wyndham's year-over-year and third quarter RevPAR, market share index results, and more importantly, the positive growth in EBITDA on a pro forma basis," stated Fred J. Kleisner, chairman and chief executive officer of Wyndham International, Inc.
    
Financial Highlights:
    
At Sept. 30, 2003, the Company's total debt was $2.735 billion, which breaks down as follows: Revolver $168.7 million; IRL's $379.2 million; Term Loans $1.078 billion; and Mortgage and Other Indebtedness $1.11 billion. Net debt, which includes cash and cash equivalents, excluding restricted cash, was $2.688 billion.
    
Wyndham's liquidity, defined as revolver availability plus cash in its overnight account was approximately $180 million versus approximately $200 million at the end of the second quarter 2003. The reduction in liquidity is due to a $10 million permanent revolver reduction associated with the repayment obligations pursuant to recent amendments to the Company's credit facilities related to asset sales, and $10 million in additional letters of credit issued for our insurance program. The Company continues to maintain solid liquidity, manage cash tightly and make prudent spending decisions given current economic conditions.
    
In addition, on Nov. 6, 2003, Wyndham completed the $94.5 million mortgage refinancing of the 570-room Wyndham Condado Hotel & Casino in San Juan, P.R. With this refinancing, Wyndham has now paid $180 million of the $194 million required commitment to extend the term of the Company's credit facilities to April 2006. Due to Wyndham's availability of funds under the terms of the amendment, the remaining portion of the commitment is completely within the Company's control regardless of other asset sales or refinancings. With this amendment, the Company has no significant mortgage maturities in 2004.
    
"We are pleased to have the opportunity to focus on our business as the economy improves. The extension of the term of our credit facilities puts us in position to execute our plan for recovery," stated Richard Smith, executive vice president and chief financial officer.
    
Brand Performance:
    
Wyndham has experienced dramatic increases in revenues booked through Wyndham.com, where the guaranteed lowest rates for a Wyndham guest room are found. For the third quarter 2003, bookings on Wyndham.com increased 143.9 percent over the same period last year. Internet channels were up 31.9 percent with ADR up $7.21 versus last year. Reservations booked on Wyndham.com during the third quarter 2003 also yielded the Company a net $24.75 rate premium over third-party Web sites due to these sites' booking fees: Wyndham WebRates(R) ADR of $97.53 versus $72.78 ADR for other third-party Internet sites.
    
Wyndham anticipates further momentum in its reservations booked through proprietary channels through the fourth quarter 2003 and into 2004, as the Company recently halted Wyndham ByRequest benefits to those guests who book their reservations using any outside third-party Web site. ByRequest benefits are extended to guests who book their reservations through Wyndham.com, a Wyndham property, their travel agent or by calling Wyndham's central reservations office. As an added incentive, those guests who book their stay through Wyndham.com by Dec. 31, 2003, and stay by June 30, 2004, are now able to select from four booking bonus options, including 500 frequent flyer miles, a free round of golf at participating Wyndham golf resorts, free breakfast or free SpongeBob SquarePants(TM) plush toy.
    
"We've put many programs in place, like our Online Booking Bonus program, in order to notify customers that they cannot buy a Wyndham-branded hotel room for less on the Internet using any outside third-party channel," Kleisner stated. "Wyndham's hotel inventory is ours alone to sell, and in order to take full advantage of the impending economic recovery, we will only sell our properties' distressed vacancy rather than its guaranteed, higher-rated occupancy on these third-party Internet sites. This is a very serious issue facing the entire travel industry, not just Wyndham."
    
In the third quarter, call volume was up 3.5 percent versus the prior year with total central reservations up 29.5 percent. Correspondingly, the cost per reservation went down to $7.98 versus $9.40 last year. Voice reservation conversions continue to be strong at 41.5 percent versus 33.2 percent last year, including a record conversion in the month of September of 45.4 percent.
    
In addition to the online booking bonus, guests who join Wyndham ByRequest or are already members will receive the benefits of membership (customized guest room, free long distance, free high-speed Internet access, welcome amenity, etc.) when they book through Wyndham.com. At the end of the third quarter, Wyndham ByRequest's membership totaled more than 1.6 million members, and contributed 16 percent of the Company's room revenues.
    
Operating Strategy:
    
The strength of Wyndham ByRequest and Wyndham WebRates has contributed to the gains in market share versus Wyndham's competitive set. Since March 2001, Wyndham has aggressively managed its expenses to preserve EBITDA without sacrificing its personalized guest experience, allowing the Company to minimize the negative impact on operating margins. Operating margins have continued to strengthen with a diminutive decrease of only 10 basis points for the quarter. For the third quarter, Wyndham-branded owned and leased properties had a RevPAR index of 109.1 or a 320 basis points increase over the third quarter last year. Each month of the third quarter, the Company experienced a sequential increase in its RevPAR penetration index and improvement over the prior year, leading with the month of September, which posted a RevPAR penetration index of 110.7 or a 670 basis point improvement over last year.
    
Kleisner added, "While our RevPAR and market share index results are encouraging, the results have been driven by year-over-year occupancy growth rather than increases in average daily rate. We've seen promising signs in our own industry as well as other industries that an economic recovery is not far off, creating a perfect opportunity for us to increase room rates in select markets where customer demand levels remain high."
    
Development:
    
Wyndham converted the Wyndham Valley Forge Suites in Wayne, Pa., the Wyndham Midtown Atlanta, and The Mayfair - A Wyndham Historic Hotel in St. Louis to franchise and management agreements in the third quarter. Also, the strategic alliance with Viva Resorts was signed on Oct. 21, 2003, whereby seven resort properties located in the Dominican Republic, Mexico and The Bahamas will be re-branded "Viva Wyndham Resorts" on Dec. 1, 2003. This agreement solidifies Wyndham's brand dominance in the Caribbean.
    
The Company continues to increase EBITDA by reducing third-party franchise fees paid to its competitors. Two non-proprietary branded, Wyndham-owned and -managed hotels will be converting to the Wyndham brand in December. The Hilton Ft. Lauderdale will become the Wyndham Ft. Lauderdale Airport on Dec. 1 and the Radisson Burlington (Vermont) is expected to become the Wyndham Burlington on Dec. 31. Both assets will nicely complement Wyndham's current branded portfolio. Prior to conversions, both properties will be equipped with Wyndham's brand standards to ensure delivery of a consistent guest experience.
    
Dispositions:
    
During the third quarter 2003, Wyndham completed the sale of four non-strategic hotels for gross proceeds of $56.2 million, including three Wyndham-branded assets that remain in the brand's portfolio pursuant to management or franchise agreements, and one non-branded Wyndham asset. Since the beginning of 2003, the Company has sold or currently has under contract to sell 21 hotel assets and four non-hotel assets for gross proceeds of approximately $255 million.
    
There are six additional hotel properties in Wyndham's asset disposition pipeline and one non-hotel asset under contract that are expected to close by the end of the first quarter 2004. After the completion of these asset sales, Wyndham will have 30 non-strategic assets remaining to be sold.
    
Future Guidance:
    
For the full year 2003, Wyndham expects EBITDA, as adjusted, to be in the range of $280.0 to $290.0 million. The $5.0 million decrease from previous guidance is due primarily to assets sold during the quarter. Full year 2003 RevPAR is estimated to be negative 1.0 to 3.0 percent compared to the full year 2002. Preliminarily, Wyndham expects 2004 RevPAR to be in the range of positive 3.0 to 4.0 percent versus the full year 2003.
 

WYNDHAM INTERNATIONAL, INC.
2003 OPERATING STATISTICS

                     Third Quarter       Nine Months Ended September 30
              -------------------------  ------------------------------
                2003    2002   % Change    2003     2002      % Change
              -------- ------- --------  --------- --------   ---------
 
 COMPARABLE WYNDHAM BRANDED HOTELS (a)
 Wyndham
  Hotels &
  Resorts
  Average
   daily rate $101.76  $105.15     -3.2%   $115.08  $121.48      -5.3%
  Occupancy      73.3%    69.8%  3.5 ppt      72.0%    69.3%   2.7 ppt
  RevPAR       $74.59   $73.39      1.6%    $82.84   $84.17      -1.6%
 
 Wyndham
  Luxury
  Resorts
  Average
   daily rate $232.56  $235.51     -1.3%   $230.27  $240.46      -4.2%
  Occupancy      58.9%    57.2%  1.7 ppt      53.5%    53.0%   0.5 ppt
  RevPAR      $137.04  $134.68      1.7%   $123.16  $127.44      -3.4%
 
 Summerfield
by Wyndham
  Average
   daily rate  $95.29  $100.71     -5.4%    $93.09  $102.71      -9.4%
  Occupancy      90.6%    86.0%  4.6 ppt      85.9%    81.1%   4.8 ppt
  RevPAR       $86.34   $86.58     -0.3%    $79.99   $83.31      -4.0%
 
 Wyndham
  Garden
  Average
   daily rate  $91.17   $96.72     -5.7%    $88.64   $96.87      -8.5%
  Occupancy      74.5%    75.1% -0.6 ppt      75.8%    72.6%   3.2 ppt
  RevPAR       $67.97   $72.62     -6.4%    $67.15   $70.28      -4.5%
 
 
 COMPARABLE OWNED & LEASED HOTELS
 Proprietary
  Branded (b)
  Average
   daily rate $103.39  $107.56     -3.9%   $115.13  $122.13      -5.7%
  Occupancy      76.9%    72.6%  4.3 ppt      75.0%    71.3%   3.7 ppt
  RevPAR       $79.49   $78.05      1.8%    $86.32   $87.10      -0.9%
 
 Non-Proprietary
  Branded (c)
  Average
   daily rate  $84.80   $88.63     -4.3%    $87.67   $92.66      -5.4%
  Occupancy      62.2%    60.1%  2.1 ppt      60.5%    61.0%  -0.5 ppt
  RevPAR       $52.76   $53.27     -0.9%    $53.07   $56.54      -6.1%
 
 Total
  Portfolio
  Average
   daily rate  $97.89  $101.82     -3.9%   $107.40  $113.46      -5.3%
  Occupancy      71.9%    68.3%  3.6 ppt      70.3%    67.9%   2.4 ppt
  RevPAR       $70.35   $69.52      1.2%    $75.45   $77.08      -2.1%
 
 
 NOTE: All hotel statistics exclude assets sold to date.
     (a) Brand statistics are based on comparable owned, managed and leased hotels for respective periods.
     (b) Reflects Wyndham Hotels & Resorts, Wyndham Luxury Resorts, Summerfield by Wyndham and Wyndham Garden Hotels that were branded as of Jan. 1, 2002.
     (c) Non-proprietary brand hotels owned by the Company as of Jan.
         1, 2002.
 
 
                       WYNDHAM INTERNATIONAL, INC.
             CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                             (in thousands)
                               (Unaudited)
                                           Quarter Ended
                                           September 30,
                                               2003
                                          Pro Forma        Comparable
                                Actual   Adjustments      Pro Forma (1)
                             ----------- ------------     -------------
 Revenues:
 Room revenues                 $177,103          $--          $177,103
 Food and beverage revenues      80,990           --            80,990
 Other revenues                  36,910           --            36,910
                             ----------- ------------     -------------
   Total hotel revenues         295,003           --           295,003
 
 Management fees and service
  fee income                      4,162           --             4,162
 Interest and other income        1,729           --             1,729
                             ----------- ------------     -------------
   Total revenues               300,894           --           300,894
                             ----------- ------------     -------------
 
 Expenses:
 Room expenses                   48,838           --            48,838
 Food and beverage expenses      62,011           --            62,011
 Other expenses                 137,858           --           137,858
                             ----------- ------------     -------------
   Total hotel expenses         248,707           --           248,707
 
 General and administrative
  costs                          11,046           --            11,046
 Interest expense                45,483           --            45,483
                             ----------- ------------     -------------
   Total operating costs and
    expenses                    305,236           --           305,236
                             ----------- ------------     -------------
 
 Revenues net of direct
  expenses                       (4,342)          --            (4,342)
 
 Adjustments:
 Professional fees and other        142           --               142
 Abandoned transaction costs       (372)          --              (372)
 Loss on derivative
  instruments                     2,394           --             2,394
 Preopening costs                    --           --                --
 Gain on sale of assets              --           --                --
 Write-off of leasehold
  costs                              --           --                --
                             ----------- ------------     -------------
   Total adjustments              2,164           --             2,164
                             ----------- ------------     -------------
 
 Depreciation and
  amortization                   51,884           --            51,884
 Equity in earnings from
  unconsolidated
  subsidiaries                     (896)          --              (896)
 Minority interest in
  consolidated subsidiaries         206           --               206
                             ----------- ------------     -------------
                                 51,194           --            51,194
                             ----------- ------------     -------------
 
 Loss from continued
  operations before taxes       (57,700)          --           (57,700)
 Income tax benefit               4,227           --             4,227
                             ----------- ------------     -------------
 Loss from continued
  operations                    (53,473)          --           (53,473)
                             ----------- ------------     -------------
 
 Loss from operations of
  discontinued hotels, net
  of taxes and minority
  interest                       (3,545)      (3,545)               --
 Gain (loss) on sale of
  assets, net of taxes and
  minority interest               2,571        2,571                --
 HPT leasehold termination
  costs, net of taxes              (150)        (150)               --
 Impairment of assets held
  for sale, net of taxes and
  minority interest             (34,500)     (34,500)               --
                             ----------- ------------     -------------
 Loss on discontinued
  operations                    (35,624)     (35,624)  A            --
                             ----------- ------------     -------------
 
 Net loss                      $(89,097)    $(35,624)         $(53,473)
                             =========== ============     =============
 
 EBITDA, as adjusted            $45,898       $2,368           $43,530
                             =========== ============     =============
 
 
 
                                           Quarter Ended
                                           September 30,
                                               2002
                                          Pro Forma        Comparable
                                Actual   Adjustments      Pro Forma (1)
                             ----------- ------------     -------------
 Revenues:
 Room revenues                 $180,799        7,620   C      $173,179
 Food and beverage revenues      84,368        3,572   C        80,796
 Other revenues                  40,484        1,111   C        39,373
                             ----------- ------------     -------------
   Total hotel revenues         305,651       12,303           293,348
 
 Management fees and service
  fee income                      4,361          377   D         3,984
 Interest and other income        1,512           52   E         1,460
                             ----------- ------------     -------------
   Total revenues               311,524       12,732           298,792
                             ----------- ------------     -------------
 
 Expenses:
 Room expenses                   46,987        1,912   F        45,075
 Food and beverage expenses      64,493        2,947   F        61,546
 Other expenses                 143,556        5,295   F       138,261
                             ----------- ------------     -------------
   Total hotel expenses         255,036       10,154           244,882
 
 General and administrative
  costs                          14,229           --            14,229
 Interest expense                53,156          358   G        52,798
                             ----------- ------------     -------------
   Total operating costs and
    expenses                    322,421       10,512           311,909
                             ----------- ------------     -------------
 
 Revenues net of direct
  expenses                      (10,897)       2,220           (13,117)
 Adjustments:
 Professional fees and other        506           --               506
 Abandoned transaction costs        606           --               606
 Loss on derivative
  instruments                    36,327           --            36,327
 Preopening costs                    15           --                15
 Gain on sale of assets            (102)          --              (102)
 Write-off of leasehold
  costs                           1,224           --             1,224
                             ----------- ------------     -------------
   Total adjustments             38,576           --            38,576
                             ----------- ------------     -------------
 
 Depreciation and
  amortization                   55,949           --            55,949
 Equity in earnings from
  unconsolidated
  subsidiaries                      (69)          54   H          (123)
 Minority interest in
  consolidated subsidiaries         (92)          --               (92)
                             ----------- ------------     -------------
                                 55,788           54            55,734
                             ----------- ------------     -------------
 
 Loss from continued
  operations before taxes      (105,261)       2,166          (107,427)
 Income tax benefit              37,596         (702)  I        38,298
                             ----------- ------------     -------------
 Loss from continued
  operations                    (67,665)       1,464           (69,129)
                             ----------- ------------     -------------
 
 Loss from operations of
  discontinued hotels, net
  of taxes and minority
  interest                       (3,044)      (3,044)               --
 Gain (loss) on sale of
  assets, net of taxes and
  minority interest              (7,485)      (7,485)               --
 HPT leasehold termination
  costs, net of taxes                --           --                --
 Impairment of assets held
  for sale, net of taxes and
  minority interest                  --           --                --
                             ----------- ------------     -------------
 Loss on discontinued
  operations                    (10,529)     (10,529)  A            --
                             ----------- ------------     -------------
 
 Net loss                      $(78,194)     $(9,065)         $(69,129)
                             =========== ============     =============
 
 EBITDA, as adjusted            $61,069      $19,107           $41,962
                             =========== ============     =============
 
    (1) The Comparable Pro Forma financial statements have been adjusted to remove the operations of hotels sold and related interest expense from corresponding retired debt and management contract revenue from terminated management contracts.
 
 
 
                       WYNDHAM INTERNATIONAL, INC.
                          EBITDA Reconciliation
                  (in thousands, except per share data)
                               (Unaudited)
                                            Quarter Ended
                                            September 30,
                                               2003
                                          Pro Forma         Comparable
                                Actual   Adjustments      Pro Forma (1)
                             ----------- ------------     -------------
 EBITDA Reconciliation
 Net loss                      $(89,097)    $(35,624)         $(53,473)
 
 Interest expense                45,483           --            45,483
 Depreciation and
  amortization                   51,884           --            51,884
 Income tax benefit              (4,227)          --            (4,227)
                             ----------- ------------     -------------
 EBITDA                           4,043      (35,624)           39,667
 
 Interest, depreciation and
  amortization from equity
  interest in unconsolidated
  subsidiaries                      669           --               669
 Interest, depreciation and
  amortization attributable
  to minority interests            (360)        (278)  B           (82)
 Professional fees and other        135           --               135
 Abandoned transaction costs         --           --                --
 Amortization of unearned
  compensation                      747           --               747
 Loss on derivative
  instruments                     2,394           --             2,394
 Preopening costs                    --           --                --
 Gain on sale of assets              --           --                --
 Write-off of leasehold
  costs                              --           --                --
 Discontinued operations
  adjustments                    38,270       38,270   A            --
                             ----------- ------------     -------------
 
 EBITDA, as adjusted            $45,898        2,368           $43,530
                             =========== ============     =============
 
 
 Per Share Calculations:
 Loss from continued
  operations                   $(53,473)                      $(53,473)
 Loss from discontinued
  operations, net of taxes
  and minority interest         (35,624)                            --
                             -----------                  -------------
 Net loss                       (89,097)                       (53,473)
 Adjustment for preferred
  stock                         (39,254)                       (39,254)
                             -----------                  -------------
   Net loss attributable to
    common shareholders       $(128,351)                      $(92,727)
                             ===========                  =============
 
 Basic and diluted loss per
  common share:
   Loss from continued
    operations                   $(0.55)                        $(0.55)
   Loss from discontinued
    operations, net of taxes
    and minority interest         (0.21)                            --
                             -----------                  -------------
     Net loss per common
      share                      $(0.76)                        $(0.55)
                             ===========                  =============
 
 Basic and diluted weighted
  average common shares and
  share equivalents             168,211                        168,211
 
 
 
                                           Quarter Ended
                                           September 30,
                                               2002
                                          Pro Forma        Comparable
                                Actual   Adjustments      Pro Forma (1)
                             ----------- ------------     -------------
 EBITDA Reconciliation
 Net loss                      $(78,194)      (9,065)         $(69,129)
 
 Interest expense                53,156          358   G        52,798
 Depreciation and
  amortization                   55,949           --            55,949
 Income tax benefit             (37,596)         702   I       (38,298)
                             ----------- ------------     -------------
 EBITDA                          (6,685)      (8,005)            1,320
 
 Interest, depreciation and
  amortization from equity
  interest in unconsolidated
  subsidiaries                    1,763          174   J         1,589
 Interest, depreciation and
  amortization attributable
  to minority interests          (1,417)      (1,046)  B          (371)
 Professional fees and other        506           --               506
 Abandoned transaction costs        606           --               606
 Amortization of unearned
  compensation                      848           --               848
 Loss on derivative
  instruments                    36,327           --            36,327
 Preopening costs                    15           --                15
 Gain on sale of assets            (102)          --              (102)
 Write-off of leasehold
  costs                           1,224           --             1,224
 Discontinued operations
  adjustments                    27,984       27,984   A            --
                             ----------- ------------     -------------
 
 EBITDA, as adjusted            $61,069      $19,107           $41,962
                             =========== ============     =============
 
 
 Per Share Calculations:
 Loss from continued
  operations                   $(67,665)                      $(69,129)
 Loss from discontinued
  operations, net of taxes
  and minority interest         (10,529)                            --
                             -----------                  -------------
 Net loss                       (78,194)                       (69,129)
 Adjustment for preferred
  stock                         (36,556)                       (36,556)
                             -----------                  -------------
   Net loss attributable to
    common shareholders       $(114,750)                     $(105,685)
                             ===========                  =============
 
 Basic and diluted loss per
  common share:
   Loss from continued
    operations                   $(0.62)                        $(0.63)
   Loss from discontinued
    operations, net of taxes
    and minority interest         (0.06)                            --
                             -----------                  -------------
     Net loss per common
      share                      $(0.68)                        $(0.63)
                             ===========                  =============
 
 Basic and diluted weighted
  average common shares and
  share equivalents             167,977                        167,977
 
 
                       WYNDHAM INTERNATIONAL, INC.
             CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
               Quarters Ended September 30, 2003 and 2002
                               (Unaudited)
 
 Notes to Pro Forma Adjustments:
    (A) Removal of assets sold, HPT leases terminated and assets held for sale.
    (B) Removal of minority interest of hotels held for sale.
    (C) Reduction of hotel revenues associated with the sale of five hotels.
    (D) Reduction of management fees due to the termination of nine hotel management contracts.
    (E) Reduction of dividend income from a sold investment.
    (F) Corresponding reduction of hotel expenses for hotels noted in (C) above.
    (G) Reduction of interest expenses associated with sold hotels.
    (H) Removal of two equity investments.
    (I) Tax benefit associated with the pro forma adjustments using an effective tax rate of 40%.
    (J) Removal of equity investments sold.
 
 
 
                       WYNDHAM INTERNATIONAL, INC.
             CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                             (in thousands)
                               (Unaudited)
                                         Nine Months Ended
                                           September 30,
                                               2003
                                          Pro Forma        Comparable
                                Actual   Adjustments      Pro Forma (1)
                             ----------- ------------     -------------
 Revenues:
 Room revenues                 $564,540       $3,689   A      $560,851
 Food and beverage revenues     285,421        1,779   A       283,642
 Other revenues                 131,774        2,107   A       129,667
                             ----------- ------------     -------------
   Total hotel revenues         981,735        7,575           974,160
 
 Management fees and service
  fee income                     13,012          108   B        12,904
 Interest and other income        3,912            6   C         3,906
                             ----------- ------------     -------------
   Total revenues               998,659        7,689           990,970
                             ----------- ------------     -------------
 
 Expenses:
 Room expenses                  146,468          705   D       145,763
 Food and beverage expenses     200,303        1,401   D       198,902
 Other expenses                 414,224        3,263   D       410,961
                             ----------- ------------     -------------
   Total hotel expenses         760,995        5,369           755,626
 
 General and administrative
  costs                          42,009           --            42,009
 Interest expense               137,636           --           137,636
                             ----------- ------------     -------------
   Total operating costs and
    expenses                    940,640        5,369           935,271
                             ----------- ------------     -------------
 
 Revenues net of direct
  expenses                       58,019        2,320            55,699
 
 Adjustments:
 Bond offering costs                 --           --                --
 Professional fees and other      2,578           --             2,578
 Abandoned transaction costs         66           --                66
 Loss on derivative
  instruments                    21,487           --            21,487
 Preopening costs                    --           --                --
 Loss on sale of assets           4,937           --             4,937
 Impairment of assets             6,132        4,092   E         2,040
 Write-off of leasehold
  costs                             522           --               522
                             ----------- ------------     -------------
   Total adjustments             35,722        4,092            31,630
                             ----------- ------------     -------------
 
 Depreciation and
  amortization                  157,046           --           157,046
 Equity in earnings from
  unconsolidated
  subsidiaries                   (1,596)          --            (1,596)
 Minority interest in
  consolidated subsidiaries         476           --               476
                             ----------- ------------     -------------
                                155,926           --           155,926
                             ----------- ------------     -------------
 
 Loss from continued
  operations before taxes      (133,629)      (1,772)         (131,857)
 Income tax benefit              43,471          311   F        43,160
                             ----------- ------------     -------------
 Loss from continued
  operations                    (90,158)      (1,461)          (88,697)
                             ----------- ------------     -------------
 
 Loss from operations of
  discontinued hotels, net
  of taxes and minority
  interest                      (15,422)     (15,422)               --
 Gain (loss) on sale of
  assets, net of taxes and
  minority interest               5,028        5,028                --
 HPT leasehold termination
  costs, net of taxes          (101,739)    (101,739)               --
 Impairment of assets held
  for sale, net of taxes and
  minority interest             (85,731)     (85,731)               --
                             ----------- ------------     -------------
 Loss on discontinued
  operations                   (197,864)    (197,864)  G            --
                             ----------- ------------     -------------
 Loss before accounting
  change, net of applicable
  taxes                        (288,022)    (199,325)          (88,697)
 
 Accounting change, net of
  applicable taxes                   --           --                --
                             ----------- ------------     -------------
 
 Net loss                     $(288,022)   $(199,325)         $(88,697)
                             =========== ============     =============
 
 EBITDA, as adjusted           $209,903      $11,070          $198,833
                             =========== ============     =============
 
 
 
                                         Nine Months Ended
                                           September 30,
                                               2002
                                          Pro Forma         Comparable
                                Actual   Adjustments      Pro Forma (1)
                             ----------- ------------     -------------
 Revenues:
 Room revenues                 $593,144      $25,327   J      $567,817
 Food and beverage revenues     296,423       12,725   J       283,698
 Other revenues                 146,313        4,060   J       142,253
                             ----------- ------------     -------------
   Total hotel revenues       1,035,880       42,112           993,768
 
 Management fees and service
  fee income                     13,404        1,284   K        12,120
 Interest and other income        5,488          748   C         4,740
                             ----------- ------------     -------------
   Total revenues             1,054,772       44,144         1,010,628
                             ----------- ------------     -------------
 
 Expenses:
 Room expenses                  146,035        5,970   L       140,065
 Food and beverage expenses     210,742        9,792   L       200,950
 Other expenses                 428,539       18,038   L       410,501
                             ----------- ------------     -------------
   Total hotel expenses         785,316       33,800           751,516
 
 General and administrative
  costs                          47,050           --            47,050
 Interest expense               164,985        1,072   M       163,913
                             ----------- ------------     -------------
   Total operating costs and
    expenses                    997,351       34,872           962,479
                             ----------- ------------     -------------
 
 Revenues net of direct
  expenses                       57,421        9,272            48,149
 
 Adjustments:
 Bond offering costs              4,504           --             4,504
 Professional fees and other      3,351           --             3,351
 Abandoned transaction costs      2,134           --             2,134
 Loss on derivative
  instruments                    69,370           --            69,370
 Preopening costs                   873           --               873
 Loss on sale of assets           3,508           --             3,508
 Impairment of assets               162           --               162
 Write-off of leasehold
  costs                           2,216           --             2,216
                             ----------- ------------     -------------
   Total adjustments             86,118           --            86,118
                             ----------- ------------     -------------
 
 Depreciation and
  amortization                  166,769           --           166,769
 Equity in earnings from
  unconsolidated
  subsidiaries                     (967)        (316)  N          (651)
 Minority interest in
  consolidated subsidiaries         230           --               230
                             ----------- ------------     -------------
                                166,032         (316)          166,348
                             ----------- ------------     -------------
 
 Loss from continued
  operations before taxes      (194,729)       9,588          (204,317)
 Income tax benefit              70,455       (3,178)  O        73,633
                             ----------- ------------     -------------
 Loss from continued
  operations                   (124,274)       6,410          (130,684)
                             ----------- ------------     -------------
 
 Loss from operations of
  discontinued hotels, net
  of taxes and minority
  interest                       (5,525)      (5,525)               --
 Gain (loss) on sale of
  assets, net of taxes and
  minority interest              (8,839)      (8,839)               --
 HPT leasehold termination
  costs, net of taxes                --           --                --
 Impairment of assets held
  for sale, net of taxes and
  minority interest                  --           --                --
                             ----------- ------------     -------------
 Loss on discontinued
  operations                    (14,364)     (14,364)  G            --
                             ----------- ------------     -------------
 Loss before accounting
  change, net of applicable
  taxes                        (138,638)      (7,954)         (130,684)
 
 Accounting change, net of
  applicable taxes             (324,102)    (324,102)  P            --
                             ----------- ------------     -------------
 
 Net loss                     $(462,740)   $(332,056)        $(130,684)
                             =========== ============     =============
 
 EBITDA, as adjusted           $287,349      $69,259          $218,090
                             =========== ============     =============
 
    (1) The Comparable Pro Forma financial statements have been adjusted to remove the operations of hotels sold and related interest expense from corresponding retired debt and management contract revenue from terminated management contracts.
 
 
 
                       WYNDHAM INTERNATIONAL, INC.
                          EBITDA Reconciliation
                  (in thousands, except per share data)
                               (Unaudited)
 
 
                                         Nine Months Ended
                                            September 30,
                                               2003
                                           Pro Forma        Comparable
                                Actual    Adjustments     Pro Forma (1)
                             ----------- ------------     -------------
 EBITDA Reconciliation
 Net loss                     $(288,022)   $(199,325)         $(88,697)
 
 Interest expense               137,636           --           137,636
 Depreciation and
  amortization                  157,046           --           157,046
 Income tax benefit             (43,471)        (311)  F       (43,160)
 Accounting change, net of
  applicable taxes                   --           --                --
                             ----------- ------------     -------------
 EBITDA                         (36,811)    (199,636)          162,825
 
 Interest, depreciation and
  amortization from equity
  interest in unconsolidated
  subsidiaries                    3,241          (62)  H         3,303
 Interest, depreciation and
  amortization attributable
  to minority interests          (1,625)      (1,066)  I          (559)
 Bond offering cost                  --           --                 -
 Professional fees and other      2,567           --             2,567
 Abandoned transaction costs         --           --                --
 Amortization of unearned
  compensation                    1,711           --             1,711
 Loss on derivative
  instruments                    21,487           --            21,487
 Preopening costs                    --           --                --
 Loss on sale of assets           4,937           --             4,937
 Impairment of assets             6,132        4,092   E         2,040
 Write-off of leasehold
  costs                             522           --               522
 Discontinued operations
  adjustments                   207,742      207,742   G            --
                             ----------- ------------     -------------
 
 EBITDA, as adjusted           $209,903      $11,070          $198,833
                             =========== ============     =============
 
 
 Per Share Calculations:
 Loss from continued
  operations                   $(90,158)                      $(88,697)
 Loss from discontinued
  operations, net of taxes
  and minority interest        (197,864)                            --
 Accounting change, net of
  applicable taxes                   --                             --
                             -----------                  -------------
 Net loss                     $(288,022)                      $(88,697)
 Adjustment for preferred
  stock                        (115,562)                      (115,562)
                             -----------                  -------------
   Net loss attributable to
    common shareholders       $(403,584)                     $(204,259)
                             ===========                  =============
 
 Basic and diluted loss per
  common share:
   Loss from continued
    operations                   $(1.22)                        $(1.22)
   Loss from discontinued
    operations, net of taxes
    and minority interest         (1.18)                            --
   Accounting change, net of
    applicable taxes                 --                             --
                             -----------                  -------------
  Net loss per common share      $(2.40)                        $(1.22)
                             ===========                  =============
 
 Basic and diluted weighted
  average common shares and
  share equivalents             168,099                        168,099
 
 
                                         Nine Months Ended
                                           September 30,
                                               2002
                                           Pro Forma        Comparable
                                Actual    Adjustments     Pro Forma (1)
                             ----------- ------------     -------------
 EBITDA Reconciliation
 Net loss                     $(462,740)   $(332,056)        $(130,684)
 
 Interest expense               164,985        1,072   M       163,913
 Depreciation and
  amortization                  166,769           --           166,769
 Income tax benefit             (70,455)       3,178   O       (73,633)
 Accounting change, net of
  applicable taxes              324,102      324,102   P            --
                             ----------- ------------     -------------
 EBITDA                         122,661       (3,704)          126,365
 
 Interest, depreciation and
  amortization from equity
  interest in unconsolidated
  subsidiaries                    4,024          230   H         3,794
 Interest, depreciation and
  amortization attributable
  to minority interests          (5,158)      (4,321)  I          (837)
 Bond offering cost               4,504           --             4,504
 Professional fees and other      3,351           --             3,351
 Abandoned transaction costs      2,134           --             2,134
 Amortization of unearned
  compensation                    2,650           --             2,650
 Loss on derivative
  instruments                    69,370           --            69,370
 Preopening costs                   873           --               873
 Loss on sale of assets           3,508           --             3,508
 Impairment of assets               162           --               162
 Write-off of leasehold
  costs                           2,216           --             2,216
 Discontinued operations
  adjustments                    77,054       77,054   G            --
                             ----------- ------------     -------------
 
 EBITDA, as adjusted           $287,349      $69,259          $218,090
                             =========== ============     =============
 
 
 Per Share Calculations:
 Loss from continued operations                  $(124,274)                     $(130,684)
 Loss from discontinued
  operations, net of taxes
  and minority interest         (14,364)                            --
 Accounting change, net of
  applicable taxes             (324,102)                            --
                             -----------                  -------------
 Net loss                     $(462,740)                     $(130,684)
 Adjustment for preferred
  stock                        (107,136)                      (107,136)
                             -----------                  -------------
   Net loss attributable to
    common shareholders       $(569,876)                     $(237,820)
                             ===========                  =============
 
 Basic and diluted loss per
  common share:
   Loss from continued
    operations                   $(1.37)                        $(1.42)
   Loss from discontinued
    operations, net of taxes
    and minority interest         (0.09)                            --
   Accounting change, net of
    applicable taxes              (1.93)                            --
                             -----------                  -------------
     Net loss per common
      share                      $(3.39)                        $(1.42)
                             ===========                  =============
 
 Basic and diluted weighted
  average common shares and
  share equivalents             167,925                        167,925
 
 
 
                       WYNDHAM INTERNATIONAL, INC.
             CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                Year-To-Date September 30, 2003 and 2002
                               (Unaudited)
 Notes to Pro Forma Adjustments:
    (A) Reduction of hotel revenues associated with the sale of one hotel in April.
    (B) Reduction of management fees due to the termination of two
         management contracts.
    (C) Reduction of dividend income from a sold investment.
    (D) Corresponding reduction of hotel expenses for hotel noted in
         (A) above.
    (E) Removal of impairment charge related to Marriott Indian River.
    (F) Tax benefit associated with the pro forma adjustments using an
         effective tax rate of 32.87%.
    (G) Removal of assets sold, HPT leases terminated and assets held
         for sale.
    (H) Removal of equity investments sold.
    (I) Removal of minority interest of hotel held for sale.
    (J) Reduction of hotel revenues associated with the sale of five
         hotels.
    (K) Reduction of management fees due to the termination of nine
         hotel management contracts.
    (L) Corresponding reduction of hotel expenses for hotels noted in
         (J) above.
    (M) Reduction of interest expenses associated with sold hotels.
    (N) Removal of two equity investments.
    (O) Tax benefit associated with the pro forma adjustments using an
         effective tax rate of 40%.
    (P) Removal of accounting change associated with the write-off of
         goodwill, according to FAS 142.
 
 
Wyndham International, Inc. offers upscale and luxury hotel and resort accommodations through proprietary lodging brands and a management services division. Based in Dallas, Wyndham International owns, leases, manages and franchises hotels and resorts in the United States, Canada, Mexico, the Caribbean and Europe. 
    
This press release contains certain forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including projections about future operating results. The Company's results, expectations and objectives could differ materially from those set forth in the forward-looking statements. 

 
Contact:
Wyndham International, Inc.
Dallas
Darcie M. Brossart
214-863-1335 
[email protected]

 
Also See: Wyndham Reports 4th Qtr Net Loss of $37 million; RevPAR Up 7.6%, Company�s Total Debt Now $2.827 billion / February 2003


To search Hotel Online data base of News and Trends Go to Hotel.Online Search

Home | Welcome! | Hospitality News | Classifieds | Catalogs & Pricing | Viewpoint Forum | Ideas/Trends
Please contact Hotel.Online with your comments and suggestions.